Sludge Explained | 60 Second Enrichment Economics

tutor2u · Beginner ·📄 Research Papers Explained ·4w ago

Key Takeaways

Explains the concept of sludge in economics and its impact on consumer welfare

Original Description

Sludge is the hidden friction that makes simple decisions unnecessarily difficult. From frustrating subscription cancellations and drip pricing to confusing cookie consent forms, firms can exploit consumer inertia to boost profits. While these barriers may seem minor, they reduce consumer welfare, distort choices, and highlight how behavioural economics shapes everyday decisions in subtle but powerful ways.
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